Dollar eases as traders await September inflation figures
The CPI report may shape rate expectations, while the euro held just above $1.12 against the dollar on Wednesday.
Key takeaways
- The dollar index was down 0.02% as traders awaited U.S. CPI data.
- September CPI was expected to rise 0.6% month on month, Reuters reported.
- John Williams said he still expects one more Fed rate hike this year.
The dollar edged lower Wednesday as traders awaited U.S. inflation data for clues on the Federal Reserve’s next moves. The dollar index slipped 0.02% to 102.16, Reuters reported.
September’s consumer price index was expected to rise 0.6% from the previous month, after a 0.4% increase in August. Annual inflation was forecast at 3.6%, up from 3.4%, Reuters said.
Market pricing put the chance of the Fed holding rates at its October meeting at 77%, Reuters reported. Ekonomim cited a 78% probability. New York Fed President John Williams said he still expects one more rate hike this year, but sees no need for further increases in 2027.
The euro was recently at $1.1207, up 0.04% since the previous close as of 06:10 UTC. Commonwealth Bank of Australia currency strategist Carol Kong said an upside surprise in core CPI could lift expectations for an October rate hike and support the dollar.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
